US private equity giant poised to take over online retailer The Very Group | Mergers and acquisitions

The Barclay family is set to lose control of another part of its former business empire as a US private equity firm takes control of online retailer Very Group.

Washington-based Carlyle Group is expected to announce its acquisition of the retailer on Monday morning.

The change of control will end more than 20 years of ownership by the Barclay family, who were forced to give up a number of businesses including the Telegraph newspaper, London’s Ritz hotel and delivery company Yodel, making them billionaires and one of Britain’s richest families.

The board of Very Group, chaired by former Conservative Chancellor Nadhim Zahawi, met on Sunday to approve the change in ownership, according to Sky News, which first reported the move.

The Barclay family, led by identical twins David and Frederick, have owned Very since buying it for £750 million in 2002 (when it was a catalog retailer known as Littlewoods). This business merged with Shop Direct in 2004. David Barclay died in 2021.

But the Barclay family’s fortunes appear to have worsened in recent years. They lost control of the Telegraph newspapers after the family struggled to pay off large loans.

Carlyle became the first lender to Very Group in 2021, with a loan of undisclosed size. The investor followed this with around £85m from its £125m debt package in 2024. Carlyle’s total funding for the business is thought to be more than £500 million.

Abu Dhabi-based investment fund International Media Investments (IMI), which also gave a loan to Very, is expected to remain as the lender.

He is not thought to be in financial difficulties. The retailer last month reported improved profitability, with earnings before interest, tax, depreciation and amortization of £307 million in the year to June 28. It generated annual sales of £2.1 billion.

The Very Group and Carlyle declined to comment.